A recent way that is catching the retail investors’ eyes lately to invest in stocks is smallcase. This article delved deeper into what smallcases are and discussed some of the best smallcases out there.
- 1 What is a Smallcase?
- 2 10 Best Performing SmallCases
- 3 Conclusion
What is a Smallcase?
Smallcase Technologies is a Fintech company launched in 2016 by three graduates from IIT Kharagpur.
Smallcase is a way for modern investors which allow them to choose from professionally tailored baskets of stocks which is built upon an investment idea or strategy. The smallcase account allows an investor to buy and sell tradable securities.
Smallcase allows investors to invest in an idea rather than stocks solely based on market capitalization. It is a well curated portfolio of stocks and ETFs based on a theme. The portfolios are created by a team of analysts and have small ticket sizes, which makes it an attractive investment destination for retail investors.
Anyone registered with the SEBI can offer a basket of stocks on the Smallcase platform. The portfolios are also rebalanced at regular frequencies. Smallcase has tied up with numerous stock brokers for the same.
Investors have to pay a research fee to the smallcase manager, which could be either fixed or percentage-based.
10 Best Performing SmallCases
Following are the 10 best performing smallcases
|1||All Weather Investing||10.28% (4Y)|
|2||Equity and Gold||16.91% (3Y)|
|3||IT Tracker||20.19% (6Y)|
|4||Value and Momentum||25.71% (6Y)|
|5||Dividend Aristocrats||21.13% (6Y)|
|6||Specialty Chemicals||19.14% (6Y)|
|7||Dividend Stars||22.69% (6Y)|
|8||Pharma Tracker||11.50% (6Y)|
|9||Electric Mobility||3.66% (4Y)|
|10||Insurance Tracker||0.07% (4Y)|
1. All Weather Investing
All Weather Investing is a smallcase offered by Windmill Capital. The minimum investment amount stands at ₹5018. The smallcase is a low volatility portfolio with a four-year CAGR of 12.22%.
Its aim is to become a one stop-shop for all investing needs of a retail investor.
With their experience and eye for detail, they were able to avoid companies like Yes Bank, Zee Entertainment, Manpasand Beverages, etc.
2. Equity and Gold
Equity and Gold is another smallcase offered by Windmill Capital. Its aim is to create wealth with equities and stay protected with gold. The minimum investment amount in this smallcase is ₹269. The smallcases’ three-year CAGR stands at 16.91%.
The weight of equities in the smallcase is fixed at 70%, while 30% is invested in gold. The smallcase invests in large-cap companies using Nippon India ETF Nifty Bees, and invests in gold using Nippon India ETF gold Bees.
3. IT Tracker
IT Tracker is yet another smallcase by Windmill Capital. It has been created to track and invest in the IT sector efficiently. The minimum investment amount stands at ₹77,767, and the smallcases’ six-year CAGR stands at 26.15%.
The contribution of IT sector to India’s GDP stood at 7.7% in 2020. India remained the world’s top sourcing destination in 2019-20 with a share of 55%.
4. Value and Momentum
Value and momentum is another smallcase offered by Windmill Capital. It invests in positive momentum stocks available at a discount to their peers. The minimum investment amount in this smallcase is ₹38,731. The six-year CAGR of this smallcase is 25.71%.
The smallcase is of high volatility. By investing in this smallcase, investors can get exposure to undervalued stocks that are witnessing momentum in their price.
5. Dividend Aristocrats
Dividend Aristocrats is a smallcase by Windmill Capital which invests in companies that have been increasing dividends. The minimum investment amount in this smallcase is ₹40,000, and the six-year CAGR of this smallcase is 21.13%.
The smallcase consists of companies that have increased their dividend payout consecutively for the last ten years.
6. Specialty Chemicals
Specialty Chemicals is another smallcase offered by Windmill Capital. It invests in companies producing sophisticated chemicals for specific purposes. The minimum investment amount in the smallcase is ₹54,976, and the six-year CAGR of the smallcase is 19.14%. The smallcase is apt for investors who can handle medium volatility.
The smallcase comprises of companies manufacturing specialty chemicals that are used in a wide range of industries like automobiles, pharma, textiles, food processing, and agro-chemicals, etc.
7. Dividend Stars
Dividend Stars is another smallcase offered by Windmill Capital. It consists of high dividend yield companies with a track record of not cutting dividends. The minimum investment amount in the smallcase is ₹30,777. The smallcases’ six-year CAGR stands at 22.69%.
It consists of companies that have maintained an average dividend yield of at least 2% over the previous five years.
8. Pharma Tracker
Pharma Tracker is another smallcase offered by Windmill Capital. It invests in companies to efficiently track and invest in the pharma sector. The minimum investment amount in the smallcase is ₹35,872. The six-year CAGR given by the smallcase is 11.50%.
The Indian pharmaceutical sector is estimated to grow to USD 100 billion by 2025. The smallcase is betting on this opportunity.
9. Electric Mobility
Electric mobility is another smallcase by Windmill Capital. It invests in companies driving India’s transition to electric vehicles. The minimum investment amount in this smallcase is ₹66,491. The smallcase has delivered a four-year CAGR of 3.66%.
The Indian government plans to achieve the sale of 60-70 lakh hybrid and electric vehicles every year from 2020 onwards.
10. Insurance Tracker
Insurance Tracker is another smallcase by Windmill Capital. It invests in companies that efficiently track the insurance sector. The minimum investment amount in this smallcase is ₹4677. The four-year CAGR delivered by the smallcase is 0.07%.
The Indian insurance industry is seeing a steady uptick in the premium amount collected.
Discussed above were some of the best smallcases. Investors should do their own due diligence before investing in any smallcase.